Mid-market segment in the real estate sector will expand significantly: P Rajendran

In conversation with Adgully, P Rajendran, Chief Sales & Marketing Officer, Shapoorji Pallonji Real Estate (SPRE), provides an overview of the real estate industry and the Indian economy in 2024, the trends and developments that are reshaping real estate, as well as the major expectations from 2025.

Rajendran pointed out that in 2024, the Indian economy demonstrated strong resilience, with a GDP growth rate of 8.2%, which reflects robust domestic demand, increased private consumption, and significant investments in infrastructure.

“Beyond traditional real estate models, the real estate industry is undergoing a major transformation. It is becoming more connected with sustainability, technology, and the changing needs of urban people,” he noted.

As the market shows a growing need for houses that provide both long-term financial value and lifestyle comfort, real estate demand is shifting towards luxury and high-end residential spaces. “Demand for premium and ultra-luxury apartments has surged in places such as Bengaluru, Hyderabad, and Pune, with prices ranging from Rs 10 crore to Rs 80 crore,” informed Rajendran.

He further said that in 2024, numerous important developments dominated the Indian real estate business, reflecting shifting customer tastes, economic shifts, and technological advances. According to him, among the most noticeable trends was the increased demand for luxury residences. It reflects a larger trend in which people are searching for homes that not only meet their needs but also provide long-term value.

“Similar to this, technology has become a defining trend in the real estate industry. AI-driven property management and digital platforms for transactions have greatly improved the process of buying and selling properties, making it more transparent and efficient,” he added.

In addition, the trend towards smart homes has grown significantly. In recent years, automated systems, energy-efficient equipment, and advanced security technology have become increasingly common, particularly in the luxury market.

Another important aspect, noted Rajendran, was the increased emphasis on sustainability. In response to customer demand as well as governmental regulations, developers are implementing eco-friendly building strategies such as recycled materials and green certifications. Sustainable design, which includes solar panels, rainwater harvesting systems, and green construction materials, has become commonplace in both residential and commercial projects.

Additionally, there was a noticeable rise in the demand for co-living spaces, driven by the evolving work culture, particularly remote work. This segment became especially popular in metropolitan areas, providing affordable living solutions for young professionals and students.

Speaking on the road ahead in 2025, Rajendran said, “The Indian real estate sector is predicted to continue to grow and evolve. It is anticipated that the mid-market segment will expand significantly over the next few years. While the luxury segment remains strong, middle-income households are increasingly seeking more affordable home solutions. It is anticipated that developers will prioritize this category as it gains traction in urban and semi-urban settings. The importance of technology in the economy is also expected to grow. AI and machine learning will improve property management and customer experience.”

As more developers embrace eco-friendly materials and green building regulations, sustainability will continue to be a significant trend. Regulations will force developers to adhere to stricter environmental requirements as a result of the worldwide effort to battle climate change, particularly as the market shifts towards carbon-neutral communities.

He further said, “It is also anticipated that the trend of integrated townships will keep rising. These developments, which include commercial, residential, and recreational areas, will increasingly satisfy the demand for self-sufficient communities that offer sustainability, convenience, and security. Furthermore, the real estate market will continue to be impacted by smart city initiatives, particularly those that pertain to urban planning and infrastructure development.”

Also Read: The Eastern market has become a major growth frontier in India: P Rajendran, SPRE